Experts Questions and Answers

That is a good questions Tal.   Personal life insurance allows you to meet more of your family’s needs than just the mortgage.  The beneficiary can use the proceeds of the life insurance policy any way they deem necessary—not just to repay the mortgage.

With a personal plan, your coverage does not decrease as your mortgage is paid down.  So, when you die, additional funds may be available at a time your family may need them most.   The beneficiaries can choose how to use the funds—pay off the mortgage, provide a monthly income or for more immediate needs.  It is their choice, not the lender’s.